Recently Funded Fix And Flip Loan In Chattanooga, TN

Loan Scenario:

This fix-and-flip project involves a single-family detached home located in Chattanooga, Tennessee. The property was purchased for $70,000, with a rehab budget of $50,000. The total loan amount secured for this project is $105,000, resulting in a Loan-to-Cost (LTC) ratio of 88% and a Loan-to-After Repair Value (LTARV) of 70%.

The after-repair value (ARV) of the property is projected at $150,000, offering substantial potential for return on investment. The scope of work for this gut rehab includes key updates and improvements such as:

• General house cleaning and dumpster rental for property cleanup
• Roof replacement to ensure structural integrity
• Sheetrock ceiling and wall repairs to address any damage or wear
• Interior painting throughout the home
• Bathroom remodel, including updating the tub and toilet
• Flooring replacement in key areas
• Kitchen cabinets and appliance upgrades
• Exterior painting to improve curb appeal
• Tree trimming to enhance the property’s landscape
• HVAC system update for energy efficiency and comfort

The semi-experienced investor will utilize the financing to cover all hard costs associated with these renovations, aiming to complete the project quickly and efficiently. With Chattanooga’s growing real estate market, this project is positioned for strong appreciation following the upgrades.

The strategic renovations and updates will enhance both the functionality and visual appeal of the home, making it an attractive option for potential buyers.